lv

Riga 13 May 2009

The Bank of Latvia Council today resolved to reduce the Bank of Latvia refinancing rate from 5.0% to 4.0%. The marginal lending facility and marginal deposit facility rates with the Bank of Latvia remained unchanged. 

The above decision was adopted in view of a continued drop in economic activity, diminishing inflation and the weak lending activity. A reduction in the interest rate would constitute and additional stimulus for encouraging activity in the interbank lats money market and motivate the banks to direct their available resources toward lending to the economy. 

The interest rates set by the  Bank of Latvia are as follows:

  In effect as of % per annum
Bank of Latvia refinancing rate 24.05.2009. 4.000
Bank of Latvia marginal lending facility rate to banks that have used the facility no more than 5 working days within the previous 30 day period 09.12.2008. 7.500
Bank of Latvia marginal lending facility rate to banks that have used the facility no more than 10 working days within the previous 30 day period 09.12.2008. 15.000
Bank of Latvia marginal lending facility rate to banks that have used the facility more than 10 working days within the previous 30 day period 09.12.2008. 30.000
Marginal deposit facility rate with the Bank of Latvia 24.03.2009. 1.000


The Bank of Latvia Council approved new "Regulation for the Purchasing and Selling Foreign Cash Currencies" (to take effect on 1 June 2009).
The new Regulation sets out the procedure whereby the Bank of Latvia grants, re-registers, rewrites, suspends, and annuls the licence for this kind of entrepreneurial activity not only for capital ventures registered in Latvia but also those registered in an European Union or European Economic Area country.
To promote safe client service practices, protection of consumer rights, and prevent the legalization of finances obtained through criminal activity, the Regulation sets out more precise requirements for the places where foreign currencies are purchased and sold. 

The Bank of Latvia Council approved new "Recommendations for Setting Up an Internal Control System for the Prevention of Legalization of Finances Obtained through Criminal Activity and Financing of Terrorism to Capital Ventures That Have Obtained a Bank of Latvia Licence for Purchasing and Selling Cash Foreign Currencies" (to take effect on 1 June 2009). The Recommendations have been developed in accordance with the prevention of legalization of finances obtained through criminal activity and financing of terrorism law to augment the fight against such legalization and financing. The Recommendations include instructions for setting up an internal control system and a more detailed explication of requirements for client identification and examination measures. 

The above Regulations will be available to all interested parties in the Legal section of the Bank of Latvia's Internet home page www.bank.lv.